Section 90: Directions for Compliances of Restrictions, etc. under the Insolvency and Bankruptcy Code, 2016

Section 90 forms part of the fresh start process under Part III, Chapter II of the Insolvency and Bankruptcy Code, 2016. It enables the resolution professional to approach the Adjudicating Authority when the debtor does not comply with the restrictions imposed by Section 85(3), does not perform the duties imposed by Section 88, or where directions are required on another matter under the Chapter for which no specific provision has been made.

Purpose of Section 90: The provision gives the resolution professional a statutory route to seek directions from the Adjudicating Authority to secure compliance and to address procedural or process-related matters not otherwise specifically provided for in the fresh start chapter.

Section 90 - Statutory Provisions

(1) The resolution professional may apply to the Adjudicating Authority for any of the following directions, namely:-

(a) compliance of any restrictions referred to in sub-section (3) of Section 85, in case of non-compliance by the debtor; or

(b) compliance of the duties of the debtor referred to in Section 88, in case of non-compliance by the debtor.

(2) The resolution professional may apply to the Adjudicating Authority for directions in relation to any other matter under this Chapter for which no specific provisions have been made.

Directions for Compliance with Section 85 Restrictions

Section 90(1)(a) is linked directly to the restrictions imposed on the debtor by Section 85(3) after admission of a fresh start application. If the debtor does not comply with those restrictions, the resolution professional may apply to the Adjudicating Authority for appropriate directions requiring compliance.

Directions for Compliance with Section 88 Duties

Section 90(1)(b) applies where the debtor fails to comply with the general duties stated in Section 88. Those duties include making information about the debtor's affairs available to the resolution professional, attending meetings, complying with requests connected with the fresh start process, and promptly reporting material errors, omissions or relevant changes in financial circumstances.

Directions on Other Matters under Chapter II

Section 90(2) also provides a residual mechanism. The resolution professional may seek directions from the Adjudicating Authority on another matter arising under the fresh start chapter where the Chapter does not contain a specific provision dealing with that matter.

Who May Apply under Section 90?

The statutory power to make an application under Section 90 is conferred on the resolution professional. The provision is therefore different from sections that expressly permit a debtor or creditor to make an application to the Adjudicating Authority.

Meaning of Important Terms

Resolution professional: For Part III, Section 79 defines the resolution professional as an insolvency professional appointed under that Part for conducting the fresh start process or insolvency resolution process.

Debtor: The Code defines a debtor as a person who owes a debt to any person.

Adjudicating Authority: The expression refers to the adjudicating forum designated under the applicable provisions of the Code for proceedings under Part III.

Fresh start process: Chapter II of Part III contains the statutory framework under which an eligible debtor may seek a fresh start in respect of qualifying debts, subject to the conditions and procedure laid down in the Code.

Related Provisions

This page is a statutory information resource. The official text, amendments, commencement notifications and applicable rules should be checked for the relevant date and proceeding.